INTRODUCTION TO ACCOUNTING TUTORIAL 2 QUESTION John Ford has run a cash 'n' carry business for several years The following was his Statement of Financial Position at 1 January 2016 Statement of Financial Position of John Ford's Cash'n'Carry as at 1/1/2016 ASSETS NON-CURRENT ASSETS Buildings at cost Fixtures and fittings at net book value Delivery van at net book value 18,400 5,800 3.500 27,700 CURRENT ASSETS Stocks (inventory Receivables (Debtors) Bank 12,000 1,200 2600 15.800 43,500 EQUITY AND LIABILITIES OWNERS EQUITY CURRENT LIABILITIES 39,700 Payables (Creditors) 3,800 43,500 During the three months from 1 January to 31 March 2016, the following transactions took place: The debtors (receivables) outstanding at 1 January 2016 paid. . The creditors (payables) outstanding at 1 January 2016 were paid The stock in hand (inventory) at 1 January 2016 (shown above, i.e. opening stock) was sold for 24,000 to credit customers Purchases of goods for resale were made for 27,000 (9,000 by cheque and 18,000 on credit) Of the goods for resale purchased during the quarter, 11,000 of these were still in stock at the quarter-end, the remainder having been sold to credit customers for 30,000 . . The amount owed to John Ford's cash'n'carry business by credit customers (debtors/receivables) at 31 March 2016 had been reduced to just 1,428 (these customers